Several vertical industries are continuing to invest heavily in IT spending, leading investment in the industry, a new IDC report claims. The manufacturing sector, for example, is projected to represent a US$225bn market for the IT sector by 2007.
Government, media, communications, banking, insurance, utilities and construction will all invest heavily in IT over the next few years, the IDC study entitled ‘Worldwide IT Spending Forecast by Vertical Market 2002-2007’ said.
“The worldwide economy ended 2002 much weaker,” noted Anne Lu, senior analyst, worldwide vertical markets at IDC. “As a result, IT budgets were negatively impacted as the year progressed and industries struggled to manage costs and meet profit goals. However, certain vertical markets still present bright IT opportunities depending on regions and industries.”
According to the IDC study, the discrete manufacturing and banking sectors will be the biggest overall IT spenders, accounting for 13pc and 12pc respectively of the worldwide IT opportunity.
The government sector will continue to offer brighter growth potential than other vertical industries and will surpass US$126bn in IT spending worldwide in 2007.
IDC predicts that the industries spending the most on software in 2007 will be healthcare, construction and services, with US$87.2bn in combined spending.
IT hardware expenditure will be the highest in the consumer, education and communications/media markets, where combined spending will reach US$168.9bn.
Outlay for IT services will be led by the banking, insurance and utilities industries, with US$162.3bn in total spending.
By John Kennedy